Since its launch in 2002, Equities First Holdings (EFH) has been a leader in the provision of alternative financial service. It has supplied funds against public traded share to allow customers to achieve their goals. The firm prides itself on completing over 700 transactions and delivering over $1.4 billion in funding. It operates on an international scope and has offices in nine strategic countries.
EFH spots a rising trend among clients who use stock-based loans
EFH is detecting an increase in the usage of stock-based and margin laws in a challenging climate where banks and other notable lenders have introduced complex lending criteria. Investors who are in need of urgent capital and individuals who do not meet the requirements of convention credit-based loans can turn to Equities First Holding for assistance. However, such persons must be holders of publicly traded shares. They should be willing to use their shares as security for obtaining the loans.
What makes EFH’s share-based loans unique?
Equities First Holding adheres to high integrity standards and participates in sound business activities. The firm is always prepared to reimburse borrowers’ shares once the transaction matures. The policy remains intact even after the decline in the share value that may arise during the transaction. EFH sets fixed and affordable interest rates for its stock-based loans. The firm’s team of loan advisors guides the clients through the entire process of loan application.
Types of securities-based loans
- Margin loan: While this loan uses stocks for collateral, it has some similarities with credit-based loans. For instance, the borrower ought to be pre-qualified, and usage of the funds is limited to the terms and conditions. The loan-to-value proportions may be between 10 and 50 percent. In the case of a margin call, the lender has the right to liquidate the client’s collateral without notice.
- Stock-based loans: The fixed interest ranges from 3 to 4 percent and proportion of loan-to-value falls between 50 and 75 percent. The borrower has the right to use the money for any legal purpose. Most share-based loans operate under the non-recourse policy and, thus, the lender reimburses the borrower even after the collateral stock has depreciated.